Podcast Episode Details

E212: Unlocking $175M: Raising Venture & Private Equity Capital with SBICs

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Episode 212

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How do you use the SBIC program to access long-dated, low-cost leverage—without blowing up risk? In this episode, I speak with Eric Rosiak, CEO & CIO of Amplify Community Investment Partners, about the mechanics of SBICs, the new accrual debenture license for venture and growth, what top LPs look for, and how policy changes could expand the opportunity set. We dig into eligibility tests, realistic fund sizes, diligence standards (they’re no joke), and why some large platforms now run SBIC sleeves alongside billion-dollar flagships.

Highlights:

• How SBIC leverage works — ~$175M, interest-only over 10 years, priced roughly ~1% over the long-dated Treasuries.
• The 3-prong eligibility test: size (NAICS/employees) or financial thresholds (net worth & income).
• The new accrual debenture license for venture/growth, with Pelion Ventures as first licensee.
• Who’s investing: insurers, foundations, funds-of-funds, plus selective endowments.
• Program changes: leverage and family-of-funds caps, and likely increases under upcoming legislation.
• Big platforms entering via SBIC sleeves (Oaktree, Barings, EIP).
• Strong historical returns: ~16-17% IRR and ~2.3× MOIC.
• Rigorous SBA and GP diligence process. -Tactical advice: structuring LP agreements early to preserve SBIC optionality.

Guest Bio:

Eric Rosiak is the Chief Executive Officer & Chief Investment Officer at Amplify Community Investment Partners, where he focuses on community and economic development strategies and raises capital for SBICs/RBICs and affordable housing funds. He previously held roles at Bank of America, Ocean Tomo, Performance Trust, FBR, and B. Riley, and holds CPA and multiple FINRA licenses.

Our Podcast now receives more than 300,000 downloads a month. Are you interested in sponsoring an episode? Please email David Weisburd at david@weisburdcapital.com.

#VentureCapital #VC #Startups #OpenLP #AssetManagement

Stay Connected:

X / Twitter: David Weisburd: @dweisburd

LinkedIn: David Weisburd: https://www.linkedin.com/in/dweisburd/ Eric Rosiak: https://www.linkedin.com/in/ericrosiak/

Links: Amplify Community Investment Partners: https://www.amplifycip.com/

Questions or topics you want us to discuss on How I Invest? Email us at david@weisburdcapital.com.

(0:00) Introduction (1:33) Understanding the SBIC program and investment criteria (3:15) Target companies and institutional investor types in SBICs (5:46) The role of leverage in SBIC fund performance and growth trends (9:54) Personal and institutional criteria for investing in SBIC funds (14:36) SBA's criteria and the process for accessing SBIC funds (19:20) Challenges for spinouts and first-time SBIC fund managers (22:56) Legislative efforts to impact SBIC investments (26:39) Lessons learned and advice for SBIC industry newcomers (30:02) The significance of leadership in SBIC success (30:52) Closing remarks

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Published on 3 months ago